Realm 2 Power WILL Go Up and Folks WILL Buy

Guest · Post by **Guest** » 15.04.2008, 08:02

First let me start by stating the fact that there are 96 products in the Kapilands. 56 out of 96 products require power as part of the production process. That's more than half of all the products in the game. Everyone always says that power in realm 2 won't go up past 0.07 because people will just produce their own power if it does. If this is the case then why is it that the average price for power in realm 1 is 0.11 and people are still buying? It's because people don't want to waste building space and time producing their own power when it's readily available to them on the market, regardless of the fact that it is expensive. Just look at the R1 Product Purchase section of the forum. There are lots of people looking for power contracts, most of which are paying upwards of 0.08 per kwh. There will always be a need for power, more specifically, there will always be a need for power producers. What do you think?

Guest · Post by **Guest** » 15.04.2008, 10:16

there will alwasy bee a need for power yes, but i don't think u understand how out of wack the supply and demand of power on r2 is right now

powerbank, #7 in fixed assets which is 450million in FA, from my understanding is 100% power company, and 450million in fixed assets which is all power plants ( well pretty much all) is such a large power output, i think he could probley supply 90% of the realms power needs, and thats only 1 player, there are many more who are in the power business, and still many more who f00lishly make there own power

so yes, you are right about there alwasy being a need for power, and the price will go up, but i think it will take some many months to see the price of power move much, if at all

Guest · Post by **Guest** » 15.04.2008, 13:18

Hey Milenko, thanks for buying my coins all the time

POWERBANK also owns stores, which makes up part of his FA, but whether or not he also owns production buildings to supply those stores I do not know. I would assume so. Personally, I'm not at all upset about current power prices in R2 as I sell all of my power for 0.05 regardless. I just thought I'd start the thread to see what kind of replies come back.

Guest · Post by **Guest** » 15.04.2008, 14:48

Firstly - the price of power will increase. Never believe that any product is to always stay between certain price tags (except under NPC price).

The thing with power, water, and any raw material largely consumed by the majority of players, is that the price of that material can't increase faster than the prices of other products. If it does, people will simply switch and the increasing supply will increase the internal competition and tear down the price. As the realm's economy gets bigger and stronger, so will the price of raw materials, because people are financially more capable of buying them at a higher price.

So as weird as it sounds at first, the price of power literally depends on the average prices of products sold in stores. That's what I believe is also a partial reason why so many attempts to raise the price of any given non-store product has not succeeded.

There will be times when the market will skyrocket, and times when it will plummet. Maybe there will be a contest for a product requiring lots of power (like gold - has already been on R1), maybe some really big player quits. There are lots of factors that effect the overall situation of the market, and there are might be lots of fluctuations regarding the price, but in general the market for any product will develop as the market for all products does.

Guest · Post by **Guest** » 15.04.2008, 15:35

Nordic Group wrote:Firstly - the price of power will increase. Never believe that any product is to always stay between certain price tags (except under NPC price).

The thing with power, water, and any raw material largely consumed by the majority of players, is that the price of that material can't increase faster than the prices of other products. If it does, people will simply switch and the increasing supply will increase the internal competition and tear down the price. As the realm's economy gets bigger and stronger, so will the price of raw materials, because people are financially more capable of buying them at a higher price.

So as weird as it sounds at first, the price of power literally depends on the average prices of products sold in stores. That's what I believe is also a partial reason why so many attempts to raise the price of any given non-store product has not succeeded.

There will be times when the market will skyrocket, and times when it will plummet. Maybe there will be a contest for a product requiring lots of power (like gold - has already been on R1), maybe some really big player quits. There are lots of factors that effect the overall situation of the market, and there are might be lots of fluctuations regarding the price, but in general the market for any product will develop as the market for all products does.

Amen

Guest · Post by **Guest** » 15.04.2008, 20:58

Anything that can be anticipated can be changed through the actions of players. If people expect power to be very profitable in the future, there is an incentive for players to build power plants. More power plants means more supply and less profit.

There isn't a single right way to play. My own personal preference is not to be dependent on a single market. You can specialize without being completely one-dimensional. That way, if one market goes south, you can enjoy your activity in another.

Guest · Post by **Guest** » 16.04.2008, 04:36

I've decided that regardless of what happens I will stick to power and power only. Therefore I say to you right now, look for me in the future, as I will be one of the top power producers in Kapilands.

Guest · Post by **Guest** » 16.04.2008, 22:43

Nordic Group wrote:
There will be times when the market will skyrocket, and times when it will plummet. Maybe there will be a contest for a product requiring lots of power (like gold - has already been on R1), maybe some really big player quits. There are lots of factors that effect the overall situation of the market, and there are might be lots of fluctuations regarding the price, but in general the market for any product will develop as the market for all products does.

This is exactly what happend in relm 1 a while back the power price went up to 20-23 for about a day and the market was FLOODED with power and then the power plumeted to 0.03-0.04 after the contest. After a while the price went back to narmal and now they are stable again

Guest · Post by **Guest** » 16.04.2008, 22:48

I agree with others that already voiced their opinions, the prices will go up on the market in the coming months as realm 2 expands, but the cheaper contract prices could bring down the market, unless people stopped selling by contract.

Instead of waiting for the natural inflation process to finish why don't we all raise prices?

Guest · Post by **Guest** » 16.04.2008, 23:09

its been explainded above that its not that easy